Cash for Clunkers Program

The Car Allowance Rebate System (CARS) Act has been signed into law. Commonly referred to as "Cash for Clunkers," this program was designed to increase the amount of fuel-efficient vehicles on the road.

CARS will help you pay for a new, more fuel-efficient car or truck from a participating dealer when you trade in a less fuel-efficient car or truck. Discounts range from $3500 to $4500 depending on the type of new vehicle and its fuel economy.

But hurry! The Program ends November 1, 2009 or when government funds have been exhausted.

The law requires dealers to be registered to participate in the program and the government will be moving as quickly as possible to register interested dealers. As dealers are registered, they will be listed on the www.cars.gov website.

If you take advantage of the rebate, make sure to get pre-approved for a USE Auto Loan to finance your new vehicle. Visit our Auto Loans page or call  (866) LOAN-NEW (562-6639) to get pre-approved.

Requirements for trade-in vehicle:
To be eligible for a voucher, the car must be in running order and meet the following criteria:

• Car must be at least 10 years old and have been made after 1984.
• Trade-in must get 18 mpg or less in combined highway and city driving.
• Must be registered and insured in purchaser's name for 1 year prior to trade-in.

Requirements for new vehicle:
New vehicles that qualify for the Cash for Clunkers bill include Passenger cars, Small light duty trucks (under 6,000 lbs.), Large light duty trucks (6,000 lbs. - 8,500 lbs.), and Commercial vehicles (8,500 - 10,000 lbs.).

To qualify for a $3,500 voucher:

• Passenger vehicles must average 22 mpg, improve at least 4 mpg over trade-in, and cost less than $45,000.
• Small light duty trucks must improve 2 mpg over trade-in.
• Large light duty trucks must improve 1 mpg over trade-in. 

To qualify for a $4,500 voucher:

• Passenger vehicles must improve 10 mpg over trade-in.
• Small light duty trucks must improve 5 mpg over trade-in.
• Large light duty trucks must improve 2 mpg over trade-in.

Diagram Courtesy of  Wall Street Journal